Fed Slashes Economic Outlook, Raises Inflation And Unemployment Rate Projection

Tyler Durden's picture

And it just gets uglier:

  • FED OFFICIALS SEE 2011 GDP 1.6%-1.7% VS 2.7%-2.9%
  • FED OFFICIALS SEE 2012 GDP 2.5%-2.9% VS 3.3%-3.7%
  • FED OFFICIALS SEE LONGER-RUN GDP 2.4%-2.7% VS 2.5%-2.8%
  • FED OFFICIALS SEE 2011 UNEMPLOYMENT 9.0%-9.1% VS 8.6%-8.9%
  • FED OFFICIALS SEE 2012 JOBLESS ESTIMATE 8.5%-8.7% VS 7.8%-8.2%
  • FED OFFICIALS SEE 2013 JOBLESS ESTIMATE 7.8%-8.2% VS 7.0%-7.5%

Full breakdown:

Full announcement


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slaughterer's picture

Preparing the groundwork for QEn.

centerline's picture

They have to make sure the politicians fingerprints are on the lever though.

Hard1's picture

These guys are so optimistic! they keep forgetting the minus sign in front of the 2012 GDP estimate

rcintc's picture

Not to worry, inflation is only Transitory.

derek_vineyard's picture

Bernanke always has cotton mouth.

nope-1004's picture

They print this shit in the hopes the market will follow their map.  None of this is even remotely accurate, especially during times of economic uncertainty.

Any and all of these printed pieces of Fed SHIT aren't worth 1/100 oz of silver.

Pure garbage.  The Fed is playing "follow me" with issuing these projections.  Complete mind numbing manipulation and coercion of the sheeple.

We all know inflation is higher than 2%.  LIAR Ben.


LongBalls's picture

You are exact. They print creating inflation, then let the CME bash commodities, then print creating inflation, then let the rumors and data that support deflation run-a-muck to knock down commodities, then print......etc.

Again, as it has been stated here numerous times; welcome to stagflation.

trav7777's picture

notice how the numbers get better into the future

I guess they are already announcing an increased lying program going forward which will bend the truth even further.

The numbers which aren't total bullshit now will be.  You won't know anyone who has a job, but the headline UE will be 6%

Messianic's picture

I've always wondered what the reported unemployment % would be if everyone - every single person in the country - quit their jobs.  Like 30%?

blunderdog's picture

It wouldn't change, because everyone who quit would just be marked down as "retired" or "left the workforce."

Messianic's picture

Lol, true...


"No one is actually working, but the unemployment rate is 25%."



DoChenRollingBearing's picture

@ slaughterer

Yes.  And we better get used to constantly revised numbers for the foreseeable future.  It's all lies anyway.

The answer is gold.

dbach's picture

Stagflation bitchez!

s2man's picture

Things that can’t go on forever, don’t - but they can sure take a long time about it

derek_vineyard's picture

Has any government agency ever under estimated the statistics that support their agenda?

Cassandra Syndrome's picture
ArkansasAngie's picture

I've got my pitchfork ready
It's plastic but hay ... It comes from china

Quinvarius's picture

But Fed models forecast 2012 mobs only .3% larger than current torch bearing mobs.  Well under the projected rise in unemployment, and therefore an improvement

Also, these mobs will count as floor traffic at the malls they are burning down during Christmas season--Bullish.

Hearst's picture

Fed slashes own wrists goes long blood.

NOTW777's picture

again - how can they get away with the happy recovery talk

john39's picture

if you repeat a lie often enough...

No One's picture

Less Employed = More EPS = BULLISH!!! Dow 36,000!!!!!!!!!!!!!!!!!!!!!!!!!!!


Why are we green today?

bnbdnb's picture

We are always green, unless someone says something negative.

Flakmeister's picture

Why are we green today?

Maybe you got drunk and passed out at a body painting salon? Maybe you channeled Kermit the Frog? Fucked if I know..

Manthong's picture

Because algos juiced by the PPT are generally biased positive..

Until they are not.

Aunty Christ's picture

I'll take the opposite side of these crack induced projections

pendragon's picture

stocks initial reaction was rally!

cosmictrainwreck's picture

I'm seeing NOTHING....what did I miss?

Carlyle Groupie's picture

I'm seeing consolidation in a tight range. Should have broken out. Algo's have been turned off?

Bullish unless Greek rumor comes true.

Cdad's picture

And by some magic, the EUR/USD prints 1.38 in a flash.  Ummm...what the hell was that?

qussl3's picture

Fx over the ST is BS, the leverage is there to hang yourself with.

The brokers must be making like bandits these couple of months.

Johnny Yuma's picture

It was the Bots. Whenever the word Fed appears in a news release, they overwhelm the shorts and clear the book...

Cdad's picture

Oh...okay.  Crime wave on then.  Carry on.

qussl3's picture

If only brent and crude were 20 bucks lower.

Better not start that shooting war in Iran so soon i suppose.

Like the Israelis are gonna cooperate.

Flakmeister's picture

Umm... WTI *is* 20 bucks lower....

monopoly's picture

So it is not all better. I just do not understand. This is so confusing. Geesh.

digitlman's picture

I see the Fed Full of Shit - 100%

lolmao500's picture
  • FED OFFICIALS SEE 2011 GDP 1.6%-1.7% VS 2.7%-2.9%

Right. To be revised down in the middle of 2012 right?

SemperFord's picture

Unemployement has been doing up for 4 years and they keep projecting it will go down year after year while anybody who works, manufactures, knows that people are spending less WTF! I need a drink...maybe two!

Uber Vandal's picture

Of course unemployment will decrease.

Once your unemployment compensation runs out, you are no longer unemployed.

Much like inflation is roughly 2% (LOL), but peanut butter increased 40%.





Eally Ucked's picture

Don't forget retiring boomers.

NotApplicable's picture

I'm currently arbitraging peanut butter by going long peanuts from our snack machine (which have yet to go up).

Zymurguy's picture

That and everytime it becomes an issue the re-formulate the calculation used to present the number... funny how that re-formulation always shows unemployment as less bad than with the earlier formulation.... hmmmmmmm.

Raynja's picture

Its almost 3 pm, do you know where your market really is?

Smiddywesson's picture
  • FED OFFICIALS SEE 2012 JOBLESS ESTIMATE 8.5%-8.7% VS 7.8%-8.2%
  • FED OFFICIALS SEE 2013 JOBLESS ESTIMATE 7.8%-8.2% VS 7.0%-7.5%
  • Absolutely hilarious!  Thank God the same Fed that said jobs were improving in the past, and was wrong, thinks they will improve in the future!  Not buying it.

    Deadpool's picture